The problem of overpayment made as a result of errors in applying complicated provisions of law is a reoccurring one, and, over the years, has necessitated a large number of private relief bills. H.R. 17954 is confined to retrospective cases involving employees who fall within the six categories. While the Department of the Navy, on behlaf of the Department of Defense, does not object to such legislation, the committee may wish to consider general legislation which would cover prospective, as well as retropsective cases. This report has been coordinated within the Department of Defense in accordance with procedures prescribed by the Secretary of Defense. The Bureau of the Budget advises that, from the standpoint of the administration's program, there is no objection to the presentation of this report on H.R. 17954 for the consideration of the committee. For the Secretary of the Navy. Sincerely, Hon. THADDEUS J. DULSKI, R. WRZESINSKI, THE POSTMASTER GENERAL, Chairman, Committee on Post Office and Civil Service, DEAR MR. CHAIRMAN: This is in reply to your request for a report on H.R. 17954, a bill to correct certain inequities and relieve certain liabilities arising out of overpayments of compensation to Government employees as a result of administrative error in the application of certain provisions of the Classification Act of 1949, the Federal Employees Salary Act of 1964, and other provisions of law, and for other purposes. This measure would validate overpayments in compensation paid to employees of the executive branch in six categories of cases, where the overpayments resulted from administrative error or misinterpretation and without fault on the part of the employee concerned. The validation would apply only to overpayments made prior to the date of enactment of the proposed legislation. Provision is also made for refund to those employees who have repaid to the Government all or part of such overpayments received. The Department believes that in proper and deserving cases, the Government should not collect salary overpayments. We, therefore, support the principle of legislation such as H.R. 17954. It is noted that the present bill is confined to retroactive cases involving employees who fall within the six categories. While the Department has no objection to such legislation, the committee may wish to consider as an alternative legislation of a more substantive nature, that is, enactment of permanent legislation which would cover prospective as well as retroactive cases, and containing safeguards as to future cases in order to prevent possible misuse of such legislation. The Bureau of the Budget has advised that there is no objection to the submission of this report to the committee from the standpoint of the administration's program. Sincerely yours, COMPTROLLER GENERAL OF THE UNITED STATES, B-152040, B-158422. Hon. THADDEUS J. DULSKI, Washington, D.C., August 27, 1968. Chairman, Post Office and Civil Service Committee, DEAR MR. CHAIRMAN: We refer to your letter of August 8, 1968, requesting our views on an amendment adopted by the committee in reporting H.R. 17954. Under existing law there is no authority in an executive agency (including the General Accounting Office) to waive an erroneous payment of compensation even though made through administrative error and received by the employee in good faith. Existing law provides for the withholding of current pay to liquidate such indebtedness (see 5 U.S.C. 5513 and 5514). The balance of any indebtedness owing at the time of an employee's separation may be liquidated by application of amounts otherwise due the employee such as the lump-sum leave payment, final salary, travel reimbursement or otherwise. Currently payable retirement benefits also could be used to liquidate the indebtedness. The desirability of enactment of the bill involves a matter of policy for determination by the Congress and we offer no recommendation with respect thereto. You specifically asked for our comments concerning the use of the date July 1, 1960, as proposed in the amendment and also as to what effect the authority to waive a claim under this proposal might have upon a claim that is subject to the 6-year statute of limitations prescribed in 28 U.S.C. 2415(d). Also you would like our comments as to the adequacy of the use of the word "pay" for purposes of this amendment. We see no objection to the use of the date "July 1, 1960" as proposed in subparagraph (a) of section 5584. However, the use of such date does nothing more than limit the retroactive application of the waiver authority granted under the amendment. We think that in addition to the use of the date, July 1, 1960, there should be included a further limitation in the bill which would require, in effect, the exercise of the waiver authority within a prescribed period of time following the date that an erroneous payment of pay is discovered. This might be accomplished by adding a new subsection (b) immediately after subsection (a) to read substantially as follows: "The waiver authority granted by this section may not be exercised with respect to any erroneous payment following the expiration of 3 years from the date that such erroneous payment was discovered or 3 years following the date of enactment of this act whichever is later." We note that subsection (e) of the proposed amendment provides in effect that the waiver of an erroneous payment validates such payment for all purposes. Therefore, it would appear to have the effect of terminating the Government's right to sue and the court's jurisdiction to entertain a suit to recover the erroneous payment which is waived under the bill despite the fact that such suit may have been filed within the 6-year statute of limitations prescribed under 28 U.S.C. 2415(d). See our further comments respecting this matter, infra. The use of the word "pay" in the bill is considered to be sufficiently remuneration for services. We suggest consideration be given, however, to some explanation in the committee report; particularly since the words "emoluments and remuneration" could be misconstrued. For example, we do not construe the word "pay" as sufficiently broad to include travel expense reimbursement. In lieu of the language "certifying, payroll, disbursing or accounting official" appearing in subsection (a) (2) (B) and subsection (d) we suggest substituting the language "accountable official." Under the amendment the Comptroller General is authorized to prescribe standards under which agencies may grant waivers of erroneous payments of pay aggregating not more than $500. We think it would be desirable to include in the committee report on the bill a statement that it is contemplated that such standards would preclude an executive agency from exercising waiver authority with respect to any claim that it has transmitted to the General Accouting Office or to the Attorney General for collection action. If such a standard is issued, then, for all practical purposes, the bill would have no effect upon the action of the Attorney General in the filing or prosecution of suits or on the Court's jurisdiction to consider actions within the 6-year time limitation prescribed in 28 U.S.C. 2415(d). We also invite attention to the fact that the bill applies only to the employees of an executive agency as defined in 5 U.S.C. 105. Therefore, it would not include employees of the Architect of the Capitol, Library of Congress, the Government Printing Office or any employees of the legislative branch except employees of the General Accounting Office, and neither would it include employees of the judicial branch. If a broader application of the bill is intended appropriate change should be made in the language thereof. Sincerely yours, FRANK H. WEITZEL, Assistant Comptroller General of the United States. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (new matter is printed in italic, existing law in which no change is proposed is shown in roman): 5582. Designation of beneficiary; order of precedence. 5583. Payment of money due; settlement of accounts. 5584. Claims for overpayment of pay. * § 5584. Claims for overpayment of pay (a) A claim of the United States against a person arising out of an erroneous payment of pay, on or after July 1, 1960, to an employee of an executive agency, the collection of which would be against equity and good conscience and not in the best interests of the United States, may be waived in whole or in part by (1) the Comptroller General of the United States; or (2) the head of the executive agency when (A) the claim is in an amount aggregating not more than $500; (B) the claim is not the subject of an exception made by the Comptroller General in the account of any accountable official; and (C) the waiver is made in accordance with standards which the Comptroller General shall prescribe. (b) The Comptroller General or the head of the executive agency, as the case may be, may not exercise his authority under this section to waive any claim (1) if, in his opinion, there exists, in connection with the claim, an indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee or any other person having an interest in obtaining a waiver of the claim; or (2) after the expiration of 3 years immediately following the date on which the erroneous payment of pay was discovered or 3 years immediately following the effective date of this section, whichever is later. (c) A person who has repaid to the United States all or part of the amount of a claim, with respect to which a waiver is granted under this section, is entitled, to the extent of the waiver, to refund, by the employing agency at the time of the erroneous payment, of the amount repaid to the United States, if he applies to that employing agency for that refund within 2 years following the effective date of the waiver. The employing agency shall pay that refund in accordance with this section. (d) In the audit and settlement of the accounts of any accountable official, full credit shall be given for any amounts with respect to which collection by the United States is waived under this section. (e) An erroneous payment the collection of which is waived under this section is deemed a valid payment for all purposes. (f) This section does not affect any authority under any other statute to litigate, settle, compromise, or waive any claim of the United States. 90TH CONGRESS HOUSE OF REPRESENTATIVES 2d Session REPORT No. 1864 PREMIUM PAY FOR OVERTIME AND STANDBY TIME BY EMPLOYEES ENGAGED IN AIR TRAFFIC CONTROL AND AVIATION SAFETY SEPTEMBER 4, 1968.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. UDALL, from the Committee on Post Office and Civil Service, submitted the following REPORT [To accompany H.R. 19136] The Committee on Post Office and Civil Service, to whom was referred the bill (H.R. 19136) to amend title 5, United States Code, to provide for the payment of overtime and standby pay to certain personnel employed in the Department of Transportation, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. PURPOSE It is the purpose of this legislation to remove the GS-10 minimum rate limitation used in computing premium pay for overtime or standby time for those employees of the Department of Transportation in nonmanagerial positions in GS-14, or under, who perform functions which directly affect aviation safety, so as to permit computation of premium pay for overtime and standby time to be made on the basis of the hourly rate of basic pay when the employee is receiving a rate which is greater than the minimum rate of GS-10. STATEMENT This legislation was cosponsored by each member of the Subcommittee on Compensation of the House Post Office and Civil Service Committee, on the basis of an official recommendation of the Department of Transportation. The legislation removes the GS-10 minimum rate, step 1, limitation used in the computation of premium pay for overtime and standby |